A late bounceback on Chinese stocks didn’t spread to other markets in the region today, as traders reacted to the overnight whomping on Wall Street. The USD remains firm against all the majors although the Australian dollar was able to bounce back a tiny bit this afternoon following the unclear inflation print. Oil markets are
There’s dead cats all over the place as overnight stock markets couldn’t help but turnover and selloff as global recession fears mount combined with some poor earnings on Wall Street. Combined with near crashes in Chinese stocks as COVID restrictions continue to bite and may well impact global supply, its all looking a bit dark
A very mixed reaction to the volatility on overnight markets here in Asia with Australian stocks playing catchup with the biggest falls as Chinese markets continue to selloff under global recession and local COVID concerns. The USD remains firm against all the majors although the Australian dollar was able to bounce back a little this
The few smartest gentlemen in the room worthy of the title are back today with grisly new warnings. BofA is still the grizzly: The Metacurse: world of extreme inflation,rates shock just beginning(“75bpsisthenew 25bps”), secular flip from QE-winners to QT-winners (see natural resources vs biotech–Chart3) well-underway as era of higher global rates begins(Chart4);“rates shock”=techtrauma…social media stocks
Stock markets had very high volatility overnight as global recession fears mount, but a late rally saw Wall Street eventually finish to the upside. This follows the crash in Chinese stocks yesterday as authorities ramp up their COVID restrictions while the PBOC tries to shore up confidence with more reserve ratio cuts. Bond markets remains
Wall Street fell sharply overnight on some very hawkish comments from Fed officials and while European markets remained upbeat. This saw the one day reversal in USD flip back to the dominant trend again with the 10 year US Treasury yield jumping back through the 2.9% level as expectations of a 50bps rise by the
Its another diversion in risk taking today with Asian stock markets going bullish and bearish in nearly equal fashion. Mainland and offshore Chinese markets are selling off sharply once again, while Japanese bourses are lifting as Yen remains weak against USD. The Australian dollar has paused its bounce back, running out of puff above the
In a word, liquidity. Citi busts a dozen bullish myths. —
Wall Street stumbled overnight on some poor earnings results while European markets were more upbeat as the USD finally lost ground against some of the major currency pairs. All eyes remain on interest rate markets however, with the 10 year US Treasury yield falling back slightly to the 2.8% level with the Fed expected to
Asian stock markets continued in mixed fashion with mainland Chinese markets remaining under pressure with risk sentiment only positive in Japanese shares as Yen continues to sell off against USD. The Australian dollar has bounced back with a look-see above the 74 cent level versus USD, while oil markets are trying to stabilise after the
A bifurcation in risk taking overnight as Wall Street rallied while European markets were more sanguine, with the new reporting season helping stateside. All eyes remain on the Fed, with the 10 year US Treasury yield making another new nearly four year high above the 2.9% level. The USD rose again with Yen dominating as
Asian stock markets are having a mixed restart after the Easter break with mainland and offshore Chinese markets remaining under pressure with risk sentiment also souring as European markets open. The Australian dollar has bounced back after its week’s long selloff, almost lifting back above the 74 cent level versus USD, while the USDJPY pair
Other than faltering macro, the other big one is earnings. In particular, the forward estimates of coked-up kids on Wall Street. Morgan Stanley has more. — We make the case that earnings revisions will decelerate amid 1Q reporting season as the MS Business Conditions Index (a survey of our industry analysts) just fell further and
Goldman is still all happy-clappy: While inflation reached its fastest yearly pace in March since the early 1980s, we believe headline and core CPI should gradually subside throughout most of the rest of the year, and reach 5.7% and 4.5%, respectively, by YE22. That said, we believe that easing current strong wage growth and tightness
A quite night of thin trading overnight as Western markets exit the Easter break with Wall Street pulling back slightly although European shares were more bullish. All eyes remain on the Fed, with the 10 year US Treasury yield making a new nearly four year high above the 2.8% level. The USD rose again to
Asian stock markets are bouncing back although mainland Chinese markets remain under pressure with risk sentiment rebounding on European markets. The Australian dollar has continued to selloff, still holding barely at the 74 cent level versus USD, while the USDJPY pair makes a two decade high. Oil markets are trying to stabilise with both markers
BofA with the monthly fundie survey. Note the extreme commodities long into extreme global recession risk. Everybody is positioned for stagflation but if we get the growth shock instead then they’ll all be forced to puke commodity positions. This hoarding is where the shortages are coming from not fundamentals. — FMS bottom line: April
A big night of economic data mixed up with bigger macro news with the breakdown in Russian/Ukrainian peace talks and Finland moving closer to joining NATO. The latest core US inflation print surprised on the downside, sending bond yields lower, with the 10 year US Treasury pulling back to 2.67% and the closely watched German
Another poor session for Asian stock markets with concerns over Chinese growth and the ongoing COVID lockdowns combined with increased tensions in Europe while the Fed seems hell bent on raising rates sharply. The Australian dollar has continued to selloff, still holding barely at the 74 cent level versus USD, while Yen is still extremely
Morgan Stanely with more useful warnings for stocks: For investors, 2022 should be called The Year of theFed with every meetingand communication more hawkish than the last. It’s almost comical how fast the markets’ expectations have changed in the past 4 months. After all, it’s not like inflation was dormant in 4Q21 (Exhibit 1). It’s
Last night saw a volatile start to the trading week for North Atlantic markets after Chinese markets sold off sharply in response to inflation and COVID concerns, while the former lost their confidence on recession concerns over more rate rises. The USD rose to a two year high with the Australian dollar continuing on its
A very poor start to the trading week for Asian stock markets with concerns over Chinese inflation and the ongoing COVID lockdowns not helping risk sentiment at all, combined with increased tensions in Europe while the Fed seems hell bent on raising rates sharply. The Australian dollar has rejoined its downtrend, now approaching the 74
The smartest guys in the room were the last to know as usual. Starting with Goldman which is still fighting it: With elevated inflation, the Fed tightening cycle accelerating and the US yield curve inverting, investors are increasingly worried about the risk of a recession. While rising inflation and rates have pushed investors to higher
Friday night saw a relatively quiet finish to the trading week without many catalysts to action with most macro news happening over the weekend, particularly the ramping up of Cold War 2.0 in Europe and the Australian election call. Markets are still absorbing the continuing hawkish signals from central banks combined with the volatility in
A relatively good session across Asian stock markets today as risk sentiment firms somewhat overnight despite the ECB overnight joining the hawkish set. The Australian dollar is trying to breakout of its week long funk, about to cross back above the 75 handle while the USD remains strong against the other major currency pairs, particularly
